Binance Temporarily Disables Withdrawals As Moving For Long-Term Storage Causes Backlog

Binance had to suspend cryptocurrency withdrawals from the website after building up a significant backlog of withdrawal requests.

What Happened: Binance, the world's top cryptocurrency exchange, was forced to suspend all crypto withdrawals after finding a major backlog of requests earlier today, according to a Monday Binance tweet.

Shortly thereafter the firm enabled withdrawals, only to close them again before finally enabling them for one last and — as of press time — final time.

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Binance CEO Changpeng Zhao reassured the exchange's users in a separate tweet that their funds are safe and the suspension of withdrawals is not the result of a hack.

The exchange appears to have developed a significant transaction backlog as growing bullish sentiment causes an increasing number of crypto investors to move their assets off-exchange for long-term storage. Glassnode data for the percent of all Bitcoin that is currently held on crypto exchanges shows that it is currently standing at 13.13% and falling — the lowest it has been since early February.

BTC Price Action: As of press time, Bitcoin is trading at $60,941.81 after seeing its price increase by 0.28% over the last 24 hours according to CoinMarketCap data.

Image by Gerd Altmann from Pixabay